by Thom Avery and Amy Oslica A common scenario for Missouri business owners: You approach the Bank for a loan on behalf of your business, and the Bank requires you to sign a personal guaranty on the debt. But, the lender also requires that your spouse—who is in no way involved in the business—must sign […]

Missouri businesses, local governments, and real estate, public finance and economic development professionals should be aware of a number of provisions related to economic development in legislation enacted during the 2017 regular legislative session of the Missouri General Assembly.

On Friday, June 1, 2017, Missouri’s Governor Eric Greitens signed Senate Bill 43, legislation that has the potential to change dramatically the landscape in the state for employers, employees, lawyers and insurers. The following is a summary of the most significant aspects of the new legislation, which goes into effect on August 28, 2017.

Beginning in 2017, new tax incentives are available for manufacturers or distributors of manufactured goods shipped through Missouri ports. Senate Bill 861 (2016) enacted three new tax deductions for companies transporting cargo through water ports and airports in Missouri. See Sections 143.2100-.2115, RSMo. The Missouri Department of Economic Development (DED) and the Missouri Department of Revenue (DOR) are charged with jointly administering the new tax deductions. Taxpayers and tax professionals should be aware of these deductions and take steps to determine their eligibility for the 2017 tax year.

In situations where commercial borrowers (developers, businesses, etc.) are in default on a promissory note, the lender may offer to enter into a “forbearance agreement” or some other form of deferment agreement with the borrower. These are often presented by the lender as a generous concession on their part in order to give the borrower additional time to try to work its way out of the problem.

A high-profile state audit of Transportation Development Districts (TDDs) could mean big changes for this frequently-used economic development tool. Developers, property owners and businesses should take steps to ensure compliance with current law and prepare for uncertainty in the wake of calls for a “total overhaul” of the TDD law.